S&P ups Rotech

Standard & Poor's said that it raised the corporate credit rating to B from B- and the first-lien senior secured debt rating to BB- from B+ on Rotech Healthcare Inc. following the completion of the company's $290 million second-lien senior secured notes offering.

The 1 recovery rating, reflecting expectations for very high (90%-100%) recovery in the event of default, on the first-lien notes is unchanged.

The ratings on Rotech reflect the company's weak business risk profile, incorporating Rotech's exposure to Medicare reimbursement reductions for its products and services, the agency said.

The ratings also reflect the company's highly leveraged financial risk profile, the agency added.

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